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Gold price today: Yellow metal firms, silver tops Rs 70,000

Gold price today: Yellow metal firms, silver tops Rs 70,000

06 Jul 2021

NEW DELHI: Gold prices were hovering close to a two-week high on Tuesday, supported by tepid dollar. Investors awaited minutes from the US Federal Reserve’s June policy meeting for more clarity on monetary policy going forward. The yellow metal gained in early trade.

Focus this week is on minutes from the Fed’s latest meeting – due on Wednesday- after a hawkish tilt from the US central bank surprised markets last month.

The dollar was little changed at 92.235 after dropping from a three-month high , hurt by the weaker details of the US payrolls report. A weaker greenback makes gold less expensive for holders of other currencies.

The Postal Savings Bank of China said it suspended new openings for accounts to trade in the spot precious metals market, citing price fluctuations and elevated trading risks.

Gold in India last week was being sold at a premium for the first time in more than two months as demand gained traction after curbs to combat the second wave of the coronavirus were slightly relaxed.

Gold futures on MCX were up 0.33 per cent or Rs 156 at Rs 47,455 per 10 grams. Silver futures gained 0.35 per cent or Rs 243 to Rs 70,282 per kg.

“COMEX gold trades near $1799/oz up about 0.9 per cent from Friday’s close. Gold has edged up as US dollar and bond yields have weakened in reaction to mixed US non-farm payrolls report. Supporting gold price is mixed economic data from major economies and renewed virus concerns.,” said Ravindra Rao,CMT, EPAT, VP- Head Commodity Research at Kotak Securities.

In the spot market, highest purity gold was sold at Rs 47,459 while silver was priced at Rs 69,651 on Monday, according to the Indian Bullion and Jewellers Association.

“However, weighing on price is weaker investor interest and Fed’s monetary tightening concerns. Gold has edged up however it might sustain only if US dollar index falls sharply.”

Trading strategy

“We expect gold prices to trade sideways to up as spot gold prices are hovering near key resistance of $1800 per ounce. The breakout may lead prices towards $1820 per ounce. MCX Gold August may witness higher opening with resistance at Rs. 47600 and support at Rs 47100 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

Global markets

Spot gold was steady at $1,792.34 per ounce by 0055 GMT, after hitting its highest since June 18 at $1,794.86 on Friday. US gold futures rose 0.5 per cent to $1,792. Most US markets were closed on Monday for the Independence Day holiday.

Silver edged 0.1 per cent lower to $26.44 per ounce, palladium gained 0.3 per cent to $2,820.70 and platinum climbed 0.5 per cent to $1,102.56.